Innovation and Business Development Report

This report examines the innovative strategies that The Australian Post can implement to enhance its mail delivery services. It discusses the challenges faced by the traditional postal system and proposes automation as a solution to improve efficiency, customer satisfaction, and service offerings. The report outlines the benefits of integrating technology, such as drones and automated notifications, to streamline operations and retain customers in a digital age. It also includes a strategic plan for implementation, project cost analysis, and expected outcomes, emphasizing the enduring relevance of paper communication in a technology-driven world.

Running head: INNOVATION AND BUSINESS DEVELOPMENT 1
Innovation and Business Development – The Australian Post
Name:
Institution:
Affiliation:

INNOVATION AND BUSINESS DEVELOPMENT 2
1.0 Executive Summary
Paper has been used for centuries as a means of communication. However, with the
advent of technology paper is slowly fading away as most people are using electronic means to
communicate. Paper is still an effective method if strategically combines with the latest
technologies. This paper looks at The Australian post and how paper can still be used as an
effective means of communication hence reviving the mail delivery business, which has been
going down. This report paper looks at how the mail delivery system can be automated by The
Australian Post, to enhance efficiency and give customers a great experience.

INNOVATION AND BUSINESS DEVELOPMENT 3
Table of Contents
1.0 Executive Summary...................................................................................................................2
2.0 Introduction................................................................................................................................5
3.0 Problem Innovation Can Solve..................................................................................................6
3.1 Delay in Mail.........................................................................................................................6
3.2 Lost Mail................................................................................................................................6
3.3 Uncollected Mail....................................................................................................................7
3.4 Use of Post Office Boxes.......................................................................................................7
3.5 Parcel Delivery System..........................................................................................................7
4.0 Benefits of the Innovation.........................................................................................................7
4.1 Efficiency...............................................................................................................................7
4.2 High Customer Satisfaction...................................................................................................8
4.3 New Service Creation............................................................................................................8
5.0 Strategic Response/ Plan............................................................................................................9
5.1 Creation of a New Vision.......................................................................................................9
5.2 Choosing Right Technology..................................................................................................9
5.3 Support Creativity................................................................................................................10
5.4 Stakeholder Communication................................................................................................10
6.0 Project Option Analysis...........................................................................................................11
6.1 Achievement Rating.............................................................................................................11
6.2 Project Cost and Predictions................................................................................................12
6.2.1 Cost of Project...............................................................................................................12
6.2.2 Cash Flow Statements...................................................................................................12
6.2.3 Net Present Value..........................................................................................................13
7.0 Delivery of Recommended Solution.......................................................................................13
7.1 Streamlining Zip Codes.......................................................................................................14
7.2 Field Research......................................................................................................................14
7.3 Installation of Boxes............................................................................................................14
7.4 Mail Collection and Delivery process..................................................................................14
7.5 Drones..................................................................................................................................15
7.6 Training of Staff...................................................................................................................15
8.0 Conclusion...............................................................................................................................15
9.0 References................................................................................................................................16

INNOVATION AND BUSINESS DEVELOPMENT 4
10.0 Appendix................................................................................................................................17
10.1 Five Year Financials The Australian Post..........................................................................17
10.2 The Australian Post Cash Flow Statement2015/2016........................................................18

INNOVATION AND BUSINESS DEVELOPMENT 5
The Enduring Power of Paper as an Effective Means of Communication
2.0 Introduction
The business case is for The Australian Post. The Australian Postal Corporation is
government-owned and provides local and international postal services. The head office is at
Melbourne and the same location serves as a post office (Aupost, 2017). The company has been
broadening its product and service range due to many external environmental factors. Currently
it focuses on three areas of operation, which are letters and associated services, retail
merchandise combined with agency services, parcels, and logistics. The Australian Post also has
a number of subsidiaries and joint ventures, which has helped it to diversify into a number of
services.
The idea is to introduce an innovative way in which The Australian Post can continue
using paper as an effective means of communication (Daunton, 2015). This will be done by
automating the physical mail postage system and coming up with faster delivery means through
notifications and drones. Technology has taken over many functions hence almost rendering mail
postal services null and void. The Australian Post can however remain relevant in the market if it
adopts an innovative way of selling its products and services, which are based on paper. Through
this, the company will be able to retain the customers who already exist and even add new ones.
They will not have to lose customers just because many people have proceeded to more
technologically advanced ways of communication. Innovation can assist the company to curve a
niche in the market as it already has the advantage of being a strong brand. The Australian Post
will also be a market leader in the innovation hence having the advantage of benefitting from a
large market share when the launch happens.

INNOVATION AND BUSINESS DEVELOPMENT 6
3.0 Problem Innovation Can Solve
The automation of the mail delivery system will solve a number of problems, which are
discussed below.
3.1 Delay in Mail
The traditional mailing system saw great delays in delivery. Important mail would be
received late sometimes hence rendering the process inefficient. Sometimes the recipient would
take time in opening the mailbox hence receiving letters, which may be of high importance later
than they were to be received (Crew & Kleindofer,2013). The automation of the whole process
will lead to mail received fast. Drones will be incorporated for very urgent messages hence this
will make the whole process very efficient.
3.2 Lost Mail
The traditional system saw a lot of mail getting lost due to incorrect address or similar
names. The process was also slow and inefficient hence leading to some mail getting lost. The
automated process will ensure that all mail is tracked hence no losses of mail (Chong et al,
2014). This will lead to a streamlined mailing system.
3.3 Uncollected Mail
The Australian Post has lots of uncollected mail. This traditionally led to lots of space
wastage and high costs of trying to resend the mail. This also meant that many people did not
receive their letters. The automated process will send automatic mobile phone notifications to
mail senders and recipients hence strive to ensure that all mail is collected.
3.4 Use of Post Office Boxes
The automation of the mail process will ensure that post office boxes are still in use
hence the company will not have to go through massive losses. The company will carry out a
powerful marketing campaign, coupled with the new automation process. This will show

INNOVATION AND BUSINESS DEVELOPMENT 7
consumers that paper is still an effective means of communication. An effective campaign will
lead to retention of post office boxes and new customers also coming in.
3.5 Parcel Delivery System
The automation process will enhance the use of mail to deliver parcels. The Australian
can take advantage of this to grow its business, as post is a cheaper means of sending parcels.
Through this, the other mail services will be enhanced as parcels mostly carry messages
(Batterson, 2014). Through use of drones, the process will be made efficient and effective.
4.0 Benefits of the Innovation
4.1 Efficiency
The processing capacity of The Australian Post will greatly improve. The company will
be able to handle a higher amount of mail that previously, due to full automation of the dispatch
process. The number of customers will increase due to a solid posting infrastructure being
established by the company. The delivery service will be completely accurate, as zip codes will
be used in identification of locations. This will lead to a reduction in collection times. Direct
postal workers will be able to identify addresses faster hence leading to efficient processes (Love
& Ropper, 2015). The quality of service provided by The Australian Post will substantially
improve. Staff performance can be monitored and timely decisions made, on how to further
improve services based on status delivery of mail as the system will generate various statistical
reports.
4.2 High Customer Satisfaction
The new automated system will respond to consumer needs for mobility by directly
forwarding any mail to new addresses. This will ensure convenience for the customers.

INNOVATION AND BUSINESS DEVELOPMENT 8
Customers will also be able to choose at what time they prefer to receive mail. There will be
therefore flexibility in sending and receiving of mail. Automation will lead to a new address
system and a microchip containing a customer signature will be installed on the mailbox. The e-
signature will be enough proof that mail has been delivered. Addresses will be automated in the
system and this will enable customers to have a locator service, which is accessed through the
website of The Australian Post (Sapra & Subramanian, 2014). The locator will also be
downloadable on mobile device. Services will be provided all over Australia hence consumers
will be able to experience convenience wherever they are.
4.3 New Service Creation
The automation process of The Australian Post’s mail system will assist the government
to develop new services for Australian citizens. Presence of an accurate system and the locator
will improve orientation all over Australia. This assists different companies to benefit from
these services and offer better services in their sectors. An accurate and efficient database will
also be created for customers as it will include name, age, profession and next of kin contacts
(West et al, 2014). The Australian post will also enhance its parcel delivery services and through
this, the business can grow at a steady rate.
5.0 Strategic Response/ Plan
In implementing the automation of the mail delivery system for The Australian Post, the
following strategic steps will be taken.
5.1 Creation of a New Vision
The Australian Post will create a new vision and review its current corporate structure so
that the use of the new technology will fit in with the organization’s business model. The

INNOVATION AND BUSINESS DEVELOPMENT 9
company can re-invent the mail identity logo of the company and this will signify the beginning
of an important strategic change. The IT department of The Australian Post will create a project
team to develop the new automated solution (Afande, 2013). They will carry out extensive
research to ensure that that the best technology is used and adapted to the business environment
of the company.
5.2 Choosing Right Technology
The Australian Post will have to settle on the right technology that will lead to an
efficient mail delivery system. The most recent technology will have to be chosen and it should
be cost effective and easy to upgrade. The systems that will be chosen must take into
consideration the political and governmental factors in Australia. The choice of technology
provider will also be important (Brewer & Rees, 2015). The company should chose
organizations with success stories and whose support is available all over the country. This will
assist the company to maximize its returns.
5.3 Support Creativity
The Australian Post should allow internal creativity and incentives given to employees
who come up with brilliant ideas related to automation of the postal system. A great
organizational culture that encourages innovation should be put in place (Verberke, 2013).
Constant training should therefore be carried out by the company so nurture employees into
coming up with creative ideas.
5.4 Stakeholder Communication
A product or service becomes successful when it meets the demands of customers. The
Australian Post has to ensure that the new service will move beyond the introduction phase and

INNOVATION AND BUSINESS DEVELOPMENT 10
gets to the growth phase where the company will start realizing profits from the new service. The
company has to implement a stakeholder communication strategy, which can be implemented as
in the table below (Mok, Shen & Yang, 2015).
The Australian post
stakeholders
Type of
communication
Means of
communication
Stake in mail
automation
project
Project Manager Briefs and Phone Email and Internal
Memo
High-Ensures all
deliverables are on
course
Project IT Engineer Briefs and Phone Email and Internal
Memo
High-Designs
Automated Mail
Delivery System
Marketing and Sales
Team
Briefs and Phone Email and Internal
Memo
Medium – Marketing
automated mail
delivery system
Finance Team Briefs and Phone Email and Internal
Memo
High-Make sure that
the project utilizes
funds appropriately
Quality Team Briefs and Phone Email and Internal
Memo
High-Ensures mail
automated system
meets standards of
quality
Test Team Briefs and Phone Email and Internal High-Ensures

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Memo automated system
operates as required
Australian
Government
Briefs and Phone Email and Internal
Memo
Medium-Make sure
that regulations are met
The Australian Post
Customers
Phone / Direct
Messaging /Adverts
E-mail /Direct Mail Low- They will only
adopt service if
automated system is
efficient and effective
6.0 Project Option Analysis
The following assessment criteria will be taken into consideration when doing the project
6.1 Achievement Rating
The Australian Post will consider if the automation project will meet the strategic
objectives, which have been set (Song & Wang, 2016). The strategic objectives are:
 Delivering Stellar Customer Service
 Empowering and Engaging Employees
 Innovation of Faster Delivery Services
 Investment in Future Platforms
 Be a leader in sustainability

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6.2 Project Cost and Predictions
6.2.1 Cost of Project
PROJECT EXPENSES-MAIL AUTOMATION PROJECT
Legal $100,000
IT System Implementation $ 1,000,000
Infrastructure Setup /Drones $ 400,000
Human Resource Requirements $100,000
Training $50,000
Marketing and Advertising $100,000
Transport and Logistics $ 100,000
TOTAL PROJECT COST $1,850,000
6.2.2 Cash Flow Statements
With implementation of the project, The Australian Post cash flow is shown below (Aupost
2017).
CONSOLIDATED 2016 2017 2018 2019
Total Cash Received AUD 7086900 7441245 8185369.5 9,822,443.4
Total Cash Used AUD 6679000 7012950 7714245 9257094
Net Cash From Operating
Expenses
AUD 407000 427350 470085 564102
Net Cash used by Investing
Activities
AUD (274,000) (260,300) (234,270) (187,416)
Net Increase/Decrease in Cash AUD 132000 138600 152460 182952